The intricate landscape of crypto requires every trader to understand the significance of the trading volume of various crypto assets in the market. This skill is frequently employed by seasoned crypto traders to analyze and understand market dynamics.

Utilizing the power of established platforms like Whaleportal gives traders access to numerous market analysis tools based on real-time data. Among these, the Taker buy/sell ratio and the VPVR indicator stand out as top techniques offering insights into market behavior. In this article, we will learn about the Taker buy/sell ratio and VPVR indicator and understand how they help traders in identifying trends and making better decisions.

Taker Buy/Sell Ratio

The Taker buy/sell indicator is used for comparing the volume of buy orders against the volume of sell orders. This means that traders can assess if more long or short orders are opening with a market order. A ratio greater than 1 shows that the market is more on the bullish side while a ratio less than 1 suggests that the market sentiment is bearish. So, during high buying pressure, traders might enter long positions, expecting the prices to rise. Whereas, a low taker buy/sell ratio would signal a good time to consider short positions to protect profit.

With taker buy/sell ratio, traders can learn about the current demand and supply dynamics of cryptocurrencies like Bitcoin instantly. Moreover, traders are able to spot FOMO or panic, identify short-term price pressure, and understand market conditions with greater accuracy. Unlike the complex trading indicators, it works in a much simpler and straightforward way by directly showing the current sentiment based on taker actions. It can be applied to various time frames for short or long-term analysis making it flexible to use than most trading metrics.

The VPVR Indicator

The Volume Profile Visible Range (VPVR) is yet another significant tool for crypto traders. It is different from typical volume histograms in terms of displaying trading volume along price levels. Traders can see trading volumes within a price range during a selected period of time. The VPVR indicator is useful in trading on pullbacks, identifying levels at which to close positions, and spotting resistance or support levels by displaying the most actively traded price ranges. It helps traders in mapping out these critical levels and makes it easier to anticipate potential market movements.

It is characterized by several components comprising on price ranges, volume bars, point-of-control (POC), value area, and high/low volume nodes. The VPVR chart is dynamic, meaning the values change as the traders navigate through the visible parts of the chart. For a detailed guide on how to apply it in your trading, read the full explanation of the VPVR indicator.

Conclusion

Taker buy/sell ratio and VPVR indicators are both useful in crypto trading in order to identify the price levels and behavior of the market. Both these indicators are best used in conjunction with other analysis tools to give traders a more detailed and accurate view of the market.